SoundScan revealed it’s 2014 statistics for the music industry, spotlighting 54 percent growth in on-demand streams of audio and video music-related content. Total streams were up from 106 billion in 2013 to 164 billion in 2014 due to the popularity of services like Spotify, Beats Music, Rhapsody and Pandora.
The rise of streaming services comes as traditional digital album and song sales are on the decline. Sales of digital albums fell 9 percent in 2014 to 117.6 million, while songs dropped 12 percent to 1.26 billion.
For the year, total sales for hip-hop albums were down 24.1 percent, while all other genres dropped just 11.2 percent. It is important to note that R&B and hip-hop music are popular on streaming sites as they increased 54 percent last year.
Some industry insiders believe that the popularity of streaming services might’ve helped the record industry break even this year. Pandora alone contributed royalties equivalent to 16.3 million album sales.
While sales may be down, streaming is way up, which will only help the music industry transition into a digital world.